US Inflation Remains Stubbornly High

Recent economic data and news indicate that inflation remains high in the US. According to the Commerce Department, prices rose 3.7% in July compared to last year, matching June's figure. This is above the Federal Reserve's target of 2%.

Fed Chair Kevin Warsh acknowledged that recent data show a slight cooling of inflation, but stated that 'underlying trends have not meaningfully improved.' He suggested that interest rates may need to be raised in the coming months to bring down inflation. The Fed's next meeting is on September 15-16.

Consumer confidence fell to its lowest level in seven months in August, according to the Conference Board. This decline was likely due to the ongoing conflict in Iran and rising gas prices above $4 per gallon.